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NORTH DAKOTA POKER COULD STILL BE ON
Published: 2005-11-29
 Internet poker companies asked to stump up for new campaign
Many industry people have been under the impression that the attempt to legalise and regulate Internet poker in the state of North Dakota was a dead duck, but this week moves were afoot to revitalise the campaign, according to a report from Associated Press.
Chief political proponent Jim Kasper is asking gambling companies to help finance a ballot measure that would make North Dakota the first state to license and regulate Internet poker businesses.
The proposal failed by 44 votes to 3 early this year when it was defeated in the North Dakota Senate, but Kasper continues to believe that the benefits to Dakotans in terms of reduced property taxes financed by gambling taxation make his ideas appealing to the majority of citizens.
Kasper has asked companies for financial support for an Internet poker initiative, but has not received any contributions thus far. He has not registered a fund-raising committee with the North Dakota secretary of state's office.
"The key is convincing the key people in the industry that it's worthwhile," said Keith Furlong, deputy director of the Interactive Gaming Council, a trade group based in Vancouver, British Columbia.
Nigel Payne, group chief executive for Sportingbet PLC, a London company that offers Internet poker and sports wagering, said he would be interested in reviewing any Kasper proposal.
"When the initiative is fully developed, we, as I am sure like others in the industry, will assess it on its merits and make a considered decision at that time," Payne said in an e-mail response to an Associated Press reporter's questions about the idea.
In e-mails to industry officials, Kasper has been more definite. "I am continuing to move forward here in (North Dakota) to put an initiated measure on the North Dakota ballot next November," he said in one message, sent last week.
The state constitution gives North Dakotans the right to circulate petitions to put proposed laws and constitutional amendments directly on the ballot. An amendment petition would need signatures from at least 25,688 eligible North Dakota voters, while a proposed law would require 12,844 names.
Kasper could circulate petitions for both a state constitutional amendment and an Internet poker licensing law if he chose. An amendment is needed in any case, to ensure North Dakota's licensing of Internet poker sites would not violate the constitution's anti-gambling provisions.
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Sportingbet posts surge in Q1 earnings - UPDATE
Published: 2005-11-30
(Adds CFO and analyst comment, other detail)
LONDON (AFX) - Online gaming group Sportingbet PLC reported a surge in first quarter earnings, boosted by last year's acquisition of Paradise Poker and an ongoing poker boom.
The company reiterated that it remains on the lookout for potential acquisition targets but played down the chance of a fresh approach for Empire Online PLC despite a recent sharp slide in its rival's share price.
Operating profit before tax, goodwill amortisation and a share-option charge surged to 22.3 mln stg in the three months to Oct 31 from 4.5 mln the prior year.
That comfortably beat financial analysts' expectations of around 17.5 mln stg.
Sportingbet shares had risen 7.5 pence or 2.1 pct to 357.5 by 9.17 am, valuing the company at around 1.2 bln stg.
'The significant increase in active real money customers, alongside a broader product range... provides an excellent foundation for growth,' Altium Securities analyst Greg Feehely said.
He reiterated his 'buy' recommendation on the stock.
Profit before tax rose 450 pct to 14.3 mln stg, or by 81 pct on a pro forma basis -- stripping out the contribution from Paradise Poker, bought for 196 mln stg last November.
Sportingbet, which became the world's third-biggest online poker group following that deal, signed up 0.17 mln new active poker accounts in the latest quarter, 137 pct more than in the same period of the previous year.
Gross win margins climbed 167 pct to 64.6 mln stg, while customer acquisition costs rose 8 pct to 148 stg.
'We are delighted with the start that we have made to this new financial year... We have recruited more new customers, taken more bets, played more games of poker and made more profit than in any previous first quarter,' chairman Peter Dicks said in a statement.
He added that the second quarter had got off to a strong start.
On a call with reporters, finance director Andrew McIver said he expects forecasts for operating profit before goodwill amortisation will be lifted 'from 93 mln stg to nearer 100 mln'.
He went on to say while the company remained on the lookout for acquisition targets, Empire Online was not among them.
'We've moved on,' he said.
The limited due diligence the company had performed on Empire Online's accounts indicated it 'wouldn't be an easy fit', though he refused to elaborate.
Sportingbet in September abandoned an attempt to buy Empire for 791 mln stg, or 270 pence per share, though chief executive Nigel Payne had subsequently failed to rule out a fresh approach.
Empire stock have since lost 70 pct of its value. It was dealt a further blow after talks with PartyGaming PLC ended in acrimony after the owner of the world's biggest online poker business attempted to slash the value of a bid.
rob.branch@afxnews.com
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